PH ranks low in dynamism poll

THE PHILIPPINES fell 12 notches in the 2015 Global Dynamism Index to rank 33rd among the 60 economies surveyed, as challenges in science and technology as well as financing continued to hamper the country’s potential to support business growth.

In the 2013 edition of the said survey, the Philippines ranked 21st.

Results of the Global Dynamism Index, which was released by P&A Grant Thornton yesterday, showed that the Philippines fell in four of the five main factors used to determine the ranking.

The Philippines fell two places to rank 53rd in the science and technology category, which measured total IT spending growth, research and development as a percentage of gross domestic product, growth in broadband subscriber lines, and broadband subscriber per 100 inhabitants.

The country’s ranking also dropped one notch to 34th place in the financing environment (quality of overall financial regulatory system, access of firms to medium term capital, private sector credit as percentage of GDP, and corporate tax burden among others); three notches down to 8th place in labor and human capital (labor productivity growth, unemployment, among others); and declined two places to rank sixth in economics and growth (which included real GDP growth and private consumer per head).

Under business operating environment, which measured political stability and legal and regulatory risks, the Philippines managed to remain at the 44th spot.

“The Philippines’ labor and human capital scored well in the GDI, thanks to its strong performance in terms of labor productivity and young workforce. Filipinos are key drivers in increasing investors’ confidence in the Philippines as more businesses recognize the role that Filipino workers and professionals play in propelling business growth and dynamism,” Marivic Españo, chair and CEO of P&A Grant Thornton said in a statement.